PayPal Holdings Inc. is exploring acquisitions of cryptocurrency companies including Bitcoin Custodian BitGo Inc., according to people familiar with the matter, a move that would expand its embrace of digital coins.
PayPal is in talks with BitGo, a company that helps investors store bitcoins safely, and can reach a deal within weeks, people said, due to not being identified. The matter is personal. People said talks could still break down and PayPal could choose to buy other targets.
It cannot be learned how much PayPal will pay for BitGo if the deal goes ahead. According to Pitchbook, in 2018 BitGo invested $ 58.5 million, a valuation of $ 170 million.
Representatives of BitGo and PayPal declined to comment.
Palo Alto, California-based BitGo was founded in 2013 by Chief Executive Officer Mike Belshe. It offers digital wallets that require multiple signatures for transactions, as well as offline vaults for storage of bitcoins and rival currencies. According to its website, it was one of the first companies in the space to focus on institutional investors.
The company applied to New York regulators in August under New York State banking law to become an independent, regulated qualified custodian, a press release showed. Custodians such as Bitcoin are responsible for securing digital assets using secure storage.
Paypal It was announced on Wednesday that its customers could buy, sell and hold cryptocurrencies including Bitcoin, Ether, Bitcoin Cash and Liticoin from digital wallets, as well as virtual money to buy 26 million merchants on its network. Can be used. The announcement gave Bitcoin a jump of $ 13,000 for the first time since July 2019.
PayPal said it would partner with BitGo competitor Paxos Trust Company, a regulated provider of cryptocurrency products and services for its new service.
Supported by investors including BitGo Goldman Sachs Group Inc., Kraft Ventures, Digital Currency Group, DRW, Galaxy Digital Ventures, Redpoint Ventures, Velor Equity Partners and Founders Fund.